Advisors are divided on including gold in portfolios due to differing views on its performance.

From Yahoo Finance: 2025-05-13 08:00:00

Gold has surged this year, hitting $3,500 per troy ounce. Advisors are divided on including gold in portfolios, with 42% maintaining views, 17% increasing allocations, and 13% decreasing. Some see gold as a diversification tool, while others view it as a poor long-term investment compared to stocks.

Despite gold’s rally, some advisors remain skeptical. They see gold as a non-income generating asset whose value depends on others paying more. Concerns over long-term performance persist, with advisors questioning its ability to hold up against stocks over time.

Advisors are split on client interest in gold, with 7% reporting increased inquiries. Some clients view gold as a hedge against uncertainty, while others see it as a traditional asset worth investing in. Six percent of advisors include gold in portfolios due to inflation concerns, while some steer clients towards cryptocurrency instead.

Read more: Allocate or avoid? Advisors weigh in on the recent gold rush